Tax on income from patent - Section 115BBF - Income Tax - Ready Reckoner - Income Tax

Tax on income from patent - Section 115BBF Eligible Assessee- Any income by way of royalty in respect of a patent developed and registered in India, the income-tax payable shall be @ 10% on the income by way of royalty and normal rate on the balance of income. No deduction on Expense - no deduction in respect of any expenditure or allowance shall be allowed to the eligible assessee under any provision of this Act in computing his income referred above Option to opt for this section - The eligible assessee may exercise the option for taxation of income by way of royalty in respect of a patent under this section on or before the due date specified u/s 139(1) Condition to opt for this section- Where an eligible assessee opts for taxation of income by way of royalty in respect of a patent under this section for any PY and the assessee offers the income for taxation for any of the 5 AYs relevant to the PY succeeding the PY not in accordance with the provisions of sub-section (1), then, the assessee shall not be eligible to claim the benefit of the provisions of this section for 5 AYs subsequent to the assessment year relevant to the previous year in which such income has not been offered to tax. Allowed deduction u/s 80RRB - The deduction shall be the lower of ₹ 3,00,000 or total income earned by way of royalty. [ For more detail refer this chapter ] Meaning of specified term developed means at least seventy-five per cent. of the expenditure incurred in India by the eligible assessee for any invention in respect of which a patent is granted under the Patents Act, 1970 patent shall have the meaning assigned to it in clause (m) of section 2(1) of the Patents Act;